Developments in Cyprus data infrastructure, economic indicators, and Paphos air connectivity

Cyta is expanding its data center portfolio in Cyprus, with the first phase expected to be operational by early 2027 to become the largest private facility in the country. Economically, Cyprus experienced a 3.0 percent GDP growth in the first quarter of 2026, a slowdown attributed by Eurobank Research to net exports despite a 10.5 percent increase in exports and a 10.4 percent increase in imports. In the banking sector, the Central Bank of Cyprus reported total net new loans of €361.90 million for May, driven by a rise in housing loans to €145.50 million and non-financial corporation loans up to €1 million reaching €63.40 million. Conversely, new business loans exceeding €1 million fell to €121.50 million, and average interest rates for new housing loans rose to 4.06 percent. Additionally, Paphos has inaugurated a new flight route from Athens operated by Aegean Airlines, running three times weekly. This service aims to improve international connectivity for the region, linking Paphos to tourism markets in Germany and Scandinavia via the Athens hub.